ZAIN Zambia Plc, trading as Celtel Zambia, is set to suspend transactions on Lusaka Stcok Exchange (LuSE) as Bharti Airtel prepares to buy the 22 per cent of the publicly-listed stake in the company.

According to a note sent to investors and the public,“Zain Zambia shareholders and public are hereby advised that trading in Zain Zambia shares shall be suspended effective 22 July 2010 to facilitate an orderly process for establishing a record date of July 27 of the shareholders register for the purpose of the mandatory offer,”

Pangaea Renaissance Securities Limited, the sponsoring broker for Zain Zambia Plc, stated that Bharti Airtel is expected to proceed to implement a mandatory offer to the minority shareholders of Zain Zambia in accordance with clause 56 (a) of the Securities – Takeovers and Mergers - rules.

“Subject to the terms and conditions of the Lusaka Stock Exchange Listing rules and Companies Act, Chapter 388 of the Laws of Zambia, trading shall resume upon completion of the mandatory offer.”

A mandatory offer to the minority shareholders might result in Bharti Airtel mopping the 22 per cent stake in Zain Zambia Plc that is publicly traded, a move that would automatically lead to the country’s biggest mobile phone company de-listing from the local bourse.

The takeover of Zain Zambia Plc follows Bharti Airtel's acquisition of Zain's African mobile services subsidiaries in Burkina Faso, Chad, Gabon, Cameroon, Congo Brazzaville, Congo DR, Kenya, Malawi, Niger, Sierra Leone, Uganda, Madagascar, Nigeria, Ghana and Zambia.

The Kuwait-based mobile phone is selling all its franchises in Africa except its operations in Sudan and its investments in Morocco, both of which are Arabic countries.

It is noted that among Zain operations in Africa, Zain Zambia Plc was the only publicly listed entity.

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